Posts in Economics
Wish I'd said that - December 11, 2019

“For ‘tis not barely the plough-man's pains, the reaper's and thresher's toil, and the baker's sweat, [that] is to be counted into the bread we eat; the labour of those who broke the oxen, who digged and wrought the iron and stones, who felled and framed the timber employed about the plough, mill, oven, or any other utensils, which are a vast number, requisite to this corn, from its being feed to be sown to its being made bread, must all be charged on the account of labour, and received as an effect of that… ‘Twould be a strange catalogue of things, that industry provided and made use of, about every loaf of bread, before it came to our use, if we could trace them; iron, wood, leather, bark, timber, stone, bricks, coals, lime, cloth, dyeing-drugs, pitch, tar, masts, ropes, and all the materials made use of in the ship, that brought any of the commodities made use of by any of the workmen, to any part of the work; all which it would be almost impossible, at least too long, to reckon up.”

John Locke The Second Treatise of Government (anticipating Leonard Read’s “I Pencil” by a quarter of a millennium)

Carbon taxes don't work

In BOE Report I argue that even a would-be economically sensible defence of carbon taxes from the Ecofiscal Commission totally misses the key economic point that, because there are no good substitutes for gas, if you raise the price then give the money back in rebates people will use it to afford more expensive gas, and if you don’t give it back they’ll economize on other things to afford more expensive gas.

Wish I'd said that - November 20, 2019

“More than a century ago, Sir Francis Galton, a pioneer of statistics, attended an English fair. More than 800 guessed the weight of a bull. The total sum, divided by the number of guessers gave the weight – to the pound. This phenomenon, which is also known as ‘the wisdom of many,’ explains why democratized stock markets, with more people drawing information from more independent sources, can better allocate capital than the isolated few.”

Reuven Brenner in National Post June 15, 2000